Wintermute Launches Institutional Tokenized Gold OTC Trading, Expects $15 Billion Market by 2026

Wintermute has launched institutional over-the-counter trading for tokenized gold, offering algorithmically optimized execution for Pax Gold (PAXG) and Tether Gold (XAUT) according to LookOnChain. The firm's OTC desk enables institutional clients to trade these tokens against USDT, USDC, fiat currencies, and major crypto assets as reported by The Block. This expansion supports real-time on-chain settlement and hedging capabilities, enhancing liquidity for institutional investors according to CryptoRank.

The tokenized gold market has grown rapidly, with trading volume surpassing that of the top five gold ETFs for the first time in Q4 2025, reaching $126 billion. This growth reflects increasing demand for 24/7 liquidity and instant settlement in the digital asset space according to Traders Union.

Wintermute projects the tokenized gold market could reach $15 billion by 2026 as institutional adoption accelerates as The Block reports. This growth is driven by macroeconomic uncertainty and the sector's ability to offer digital exposure to physical bullion according to BeInCrypto.

Why Did This Happen?

Wintermute's entry into tokenized gold OTC trading is a response to the sector's rapid expansion and institutional demand for liquidity as CryptoRank notes. The firm's CEO, Evgeny Gaevoy, noted that the tokenized gold market is undergoing an infrastructure evolution similar to the foreign exchange market according to LookOnChain. The move enables institutional investors to access tokenized gold without the logistical challenges of traditional gold custody as CoinPaper reports.

Institutional adoption has been fueled by tokenized gold's ability to offer fractional ownership, 24/7 trading, and instant settlement according to CoinFomania. This contrasts with traditional gold ETFs, which operate during limited market hours as Traders Union explains.

How Is the Market Structured?

The tokenized gold market is highly concentrated, with Tether Gold (XAUT) and Paxos Gold (PAXG) controlling 96.7% of the sector. XAUT is backed by gold stored in Swiss vaults, while PAXG is supported by allocated gold audited in London according to Blockonomi.

This concentration raises structural concerns about market resilience. Reliance on two major issuers exposes the market to operational risks and shifts in trust as CoinPaper notes. However, both tokens provide 24/7 liquidity and compatibility with decentralized finance platforms according to Blockonomi.

The market now holds over 1.2 million ounces of physical gold in vaults, blending traditional safe-haven security with digital convenience as CoinFomania reports. This hybrid model has attracted both crypto-native investors and traditional asset allocators according to CoinFomania.

What Are Analysts Watching Next?

Analysts are monitoring how market concentration affects long-term growth and stability according to CoinPaper. Tether's recent strategic investment in Gold.com and its plan to increase gold exposure to 10–15% of its portfolio highlight the sector's potential for further expansion as BeInCrypto reports.

Regulatory developments will also play a key role in determining the tokenized gold market's trajectory according to CryptoJobs. The sector's growth is expected to continue as institutions explore blockchain-based on-ramps to traditional assets as CryptoRank notes.

Investor behavior is another key metric. The tokenized gold market has grown by over $2 billion year-to-date, with gold prices currently at $4,965 per ounce as CoinPaper reports. Sustained demand for tokenized gold could drive further adoption and broader acceptance of blockchain-backed commodities according to BeInCrypto.